The Rossoneri president expressed his burning desire to succeed on all fronts this term following a recent surge in form, while he also branded Mario Balotelli a "genius"
Despite an uncertain start to the campaign, the Rossoneri have won five of their last seven matches - a run which has seen them move into the Serie A top three and take control of their Champions League last-16 tie with Barcelona.
And Milan's sudden upturn in results has led their president to believe that a late tilt for the domestic title, as well as a potential charge for European glory, is not beyond the realms of possibility at this stage.
"[The Scudetto] is between us, Juventus and Napoli. We are now third in the standings and can go even further," he told Corriere dello Sport.
"We were written off immediately after the first matchday of the season. Some even said that we'd struggle to survive.
"And in the sporting press, too much print was wasted on our decision to rebuild the squad and focus on young players.
"I want to win both [Serie A and the Champions League] and I will not settle for third place in the league."
Berlusconi also took the time to single out the "genius" talents of Milan new boy Mario Balotelli following the striker's recent €20 million switch from Manchester City.
"Balotelli is a genius," the Rossoneri chief added.
"He has all the qualities to be one of our talismans along with [Stephan] El Sharaawy, [Mattia] De Sciglio and others; all of whom we plan to build Milan around over the next 10 years."
Milan face Inter on Sunday in the Derby della Madonnina, and the Nerazzurri will likely be without defender Andrea Ranocchia as he picked up a knee injury in their Europa League win over Cluj on Thursday night.